Axis Capital Group Business Funding

Your credit score is a three-digit numerical representation of your credit-worthiness, or how likely you are to reliably pay back money you borrow. It may seem simple enough, but credit scores aren’t always intuitive. Even when you think you’re doing the right thing financially, you may be actually hurting your credit score.

When you are dealing with your credit scores and reports, make sure you bring an extra memory bank and understanding. Be cautious before bursting out any complaints. The things involved in it may be complicated. Also, try not to believe other people say about credit scores. Make sure you verify the information first.

Well, for a starter, here are some common fictions created about credit scores Axis Capital Business Funding, a direct source of credit loans for your business based in America and has now expanded to Jakarta, Indonesia, has prepared.

Fiction: The more money you make, the better your credit score will be.

Fact: Your income has nothing to do with your credit score. It’s not reported to the credit bureaus or listed on your credit report.

Fiction: Once you’ve paid a past-due debt, it will drop off of your credit report.

Fact: Late payments and other negative information remain on your credit report for seven years from the date of the initial late payment. Bankruptcies typically stick around for 10 years from the bankruptcy filing date. While that black mark may continue to soil your credit report, however, its effect on your credit score will lessen over time.

Fiction: Credit bureaus never make mistakes.

Fact: Now, this is one of the common misconceptions. Since credit reports generated by the three major credit-rating agencies are from a good system, many people do not review their credit report regularly. In truth, nearly 8 in 10 credit contain serious error or some sort of mistake, according to a survey by the U.S. Public Interest Research Groups. Because many errors can negatively impact your credit score, it’s important to check your credit report regularly and dispute any inaccuracies you find.

Fiction: Practicing a cash-only policy will help your credit score.

Fact: Having good credit is a function of having credit available to you and using it responsibly. If you don’t have or use credit, you may have no credit history at all and if you do, your credit score won’t be as good as someone who consistently demonstrates responsible use of credit over time.

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